Rutgers logo
Rutgers logo
Rutgers logo
Rutgers logo
International team of coworkers putting colorful puzzles together

Sponsored Programs

Pre-Award

Overview

A Sponsored Program is any externally funded research or scholarly activity with a defined scope of work or set of objectives that creates an expectation from the Sponsor. These programs typically require a formal proposal submission and are governed by specific terms and conditions associated with the award. As the steward of the funds, the University is obligated to ensure adherence to the obligations and compliance requirements outlined in the award agreement, as well as compliance with university policies, federal regulations, and applicable federal and state laws.

In contrast, a Gift is a donation made to the University with charitable intent that typically carries no reciprocal obligations for the university. While a gift can be restricted for a general purpose, the university retains broad discretion on how the funds are used to meet the donor's intent.

  • A Sponsored Program is an award to the University from a Sponsor in exchange for providing a specific service, specific research, or specific deliverables. Awards may take many formats, including grants, contracts, memoranda of understanding, memoranda of agreement, letter agreements or other types of legal instruments and usually include several terms and conditions, such as those referencing financial audit and reporting, return of unspent funds, representations and warranties, indemnification provisions, publicity restrictions, publication rights, and/or rights to intellectual property, copyrights and licensing.

    Awards support activities that may include research, instruction and training, public service, and/or evaluative testing conducted by university faculty and staff. Sponsors may be federal, state, or local government agencies, private foundations, corporations, or other non-profit organizations.

    Included in the definition of a Sponsored Program is the Non-exchange Charitable Grant. This type of Award:

    1. Is a voluntary donation to a tax-exempt organization to support activities, or
    2. Is for religious, charitable, scientific, literary, or educational purposes, or
    3. Includes specific terms and conditions that require management by the Rutgers Office for Research to ensure compliance with Rutgers’ policies and processes, sponsor guidelines, and/or the terms and conditions of the charitable Award.

  • A gift is a voluntary, irrevocable transfer of money or property made by a donor without expectation of, or receipt of, direct economic benefit or any other tangible compensation from the donor. The funds are often unrelated, or only indirectly related, to the donor’s business interests or mission. See Rutgers University Policy 40.2.13: Donor Gift Policy

    A gift may be unrestricted, or it can be a “restricted gift” designated for a general purpose. Even when restricted, the University and the designated recipient retain broad latitude and discretion in how the funds are used to implement the donor’s intent. The University, not the donor, determines which institutional members are eligible to participate in activities supported by the gift.

    Gifts are routed through the Rutgers Foundation and receive accounts from University Finance that are designated specifically for gifts. They are not processed by the Office for Research.

  • Federal awards are issued under various instruments (grants, cooperative agreements, contracts, and Other Transaction Agreements), and each carries unique requirements and compliance obligations. The instrument type determines the governing regulations, reporting standards, and the level of federal involvement in the project.

    • Grants generally support a public purpose with minimal sponsor oversight and allow flexibility in scope and budget.
    • Cooperative agreements also support a public purpose but involve substantial federal participation in the work.
    • Contracts are procurement mechanisms used when the government acquires goods or services for its direct benefit, imposing strict deliverables and performance requirements under the Federal Acquisition Regulation (FAR).
    • Other Transaction Agreements (OTAs) are alternative funding mechanisms used by certain federal agencies for research, development, or prototype projects. OTAs are flexible agreement types that are exempt from the FAR or the Code of Federal Regulations (CFR), specifically Uniform Guidance Chapter 2, CFR Part 200: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and allow the government to negotiate terms tailored to project needs.

    Accurate classification is crucial to ensure proper budgeting, compliance with federal statutes, and the avoidance of audit findings or legal risks. Understanding the instrument type helps Rutgers meet the sponsor’s expectations and maintain compliance.